All Forum Posts by: Danielle D.

I switched to Keystone CPA in late 2014 and COULD NOT BE HAPPIER.  I'm in Denver and they're in California but it does not matter.  Amanda and her team are worth every penny. While they are significantly more expensive on a fee basis than my previous CPA, she's saved me so much more money with her solid advice.  They are experts in the real estate field and do a lot of webinars on BP (that's where I found them).  You cannot do better.

www.keystonecpa.com

Danielle

Hi Isaac,

I'm doing something similar in Denver.  There are many dependencies to consider but assuming you took it down to the studs and the roof and siding don't need to be replaced and there's no structural issues or additional structural framing, I'd think you could do it for $100/sq ft.  Again, really depends on your situation.  You'll have additional demo cost for ripping out plumbing, HVAC, insulation, electric, etc.

If you have more specifics that would be helpful.

Danielle

Hi All,

I wanted to update everyone on the bids I received.  For a level 3 finish with orange peel texture and wrapped drywall windows, I received 4 estimates, all came in between $50-60 a board.  (I estimated 210-220 boards).

So, I feel pretty confident that this is the going rate in Denver now!

Thanks again,

Danielle

Thank you all for your helpful and quick responses.  I will follow up with a post on who I hired, if they were good and what I paid.

Oh, and I've used Thumbtack.com as well for bids.

I've looked through these forums and have seen prices from $30-35 per board for drywall prices.  I've got a 1750 square foot new build.  Second floor has vaulted ceilings to 11'8" .  First floor has 9' ceilings.  Other than that it's a basic box - 3 bed, 3 bath.  

What should I expect to pay per board?  I'm getting quotes as high as $65 per board for hanging, taping, mudding, wrapped windows and orange peel finish.  

This seems VERY high?  Any thoughts or drywall contractor recommendations would be appreciated!

Danielle

Thank you all for your advice.  It's crazy how much conflicting information is out there.  To Brandon's answer to C. regarding 25% passive income...  I spoke to a CPA yesterday who said that the rule only applies to companies who used to be C Corps and switched to S Corp status.  For those who start as S Corps or LLCs, the rule doesn't apply.  I've heard that twice now.

Hi All,

Thank you for your responses.  If I understand what you are all saying then:

A.  The income I earn from flipping homes can't simply be passed through and then subject only to my income tax.  At least part of it has to be paid to me as W2 wages and subject to withholding.  If I don't opt to be taxed as an SCorp then I will pay the employee and employer portion of withholding on ALL of the income.  If I do opt for SCorp status, I can shield my distributions from the employer withholding.

B.  Passive income is always a pass through - no SE taxes paid.

C. Steven, you suggested flips in an SCorp but my understanding is that the SCorp doesn't offer the legal protection that an LLC does. Are you saying flips in an LLC that's taxed as an S Corp?

Finally, can anyone recommend a great real estate CPA in Denver?

Thanks again!

Danielle

Hi All,

My CPA is advising that I have my LLC be taxed as an SCorp because I'm an active participant in my fix and flips. To clarify, I have a multiple member LLC (me and my husband). In that LLC, I make some private money loans, do some fix and flip work and, in the near future, will have some rental income. In 2014 we'll likely have a 25/75 split between passive (interest income) and 'investment' (fix & flip income). In future years, that will likely become more a 50/50 split.

I disagree with my accountant and think that I should be able to pass all that income through on a K1 (or schedule C) and NOT have to pay myself a "market salary" and then take dividends in an S Corp.  

Can any expert out there chime in on whether this S Corp election is likely to be required?

Thank you!

Danielle

Sorry about the lack of info - I thought I was posting on a board specific to Denver!  Yes, I'm a seasoned investor but new to scrapes, so I was looking for feedback on construction costs specifically.  Apologies for the confusion and thank you for the long reply!

Daneille

Hi all,

I just picked up a 600 sq ft house in the Regis area. I was hoping to gut it and add 800 square feet on the back but I just learned that it has no foundation!   It looks like it'll have to be scraped. 

I need to build new at $100/sq ft maximum not including demo, plans, professional services, and water tap which I have in for $18k.  It's a half lot (3,120).  Mid-grade finishes which I can source myself to save $.

Is this doable NOW and in this market?  

Any suggestions or feedback is appreciated.

Danielle